Canada’s Rogers Communications (TSE:RCI) has reportedly received interest from foreign suitors for its television shopping channel, which could sell for more than C$300m (US$237m).
The telecoms and media company launched the sales process for The…
Canada’s Rogers Communications (TSE:RCI) has reportedly received interest from foreign suitors for its television shopping channel, which could sell for more than C$300m (US$237m).
The telecoms and media company launched the sales process for The Shopping Channel about six weeks ago and has received first-round bids, Reuters reported citing people familiar.
John Malone’s media company Liberty Interactive (NASDAQ:QVCA) is among the bidders, one source reportedly said. Others could include the US’ Home Shopping Network (HSN) (NASDAQ:HSNI) and its rival EVINE Live (NASDAQ:EVLV) as well as private equity firms.
The Shopping Channel is Canada’s sole nationally televised and online shopping service. It contributed 16% of the C$1.8bn in revenues generated by Rogers’ media business in 2014. The company’s wireless and cable and business segments were much bigger earners with revenues of C$7.3bn and C$3.9bn respectively.
Canadian regulators could reportedly block the sale of a controlling stake in the TV channel to a foreign buyer. However, a non-Canadian could acquire a majority equity stake if a local entity had a majority voting stake, one source was cited saying, noting however that changes to distribution regulations could still create issues.
The Canadian broadcast regulator ruled in March that viewers should be able to pick which TV channels they pay for rather than being forced to fork out for multiple channels they don’t watch.
Rogers has revised its strategy under president and CEO Guy Laurence, who started in December 2013 after about five years as head of Vodafone UK. There, Laurence led the acquisition of fixed-line operator Cable & Wireless Worldwide, boost Vodafone’s local fixed/mobile strategy.
Earlier this month, Rogers closed its acquisitions of small wireless operator Mobilicity and spectrum from DTH broadcaster Shaw Communications (TSE:SJR) for a combined C$540m.
